Interest in and concern about the social performance of companies is growing as people become increasingly aware of the effect company activities have on society. For example, those who care about the environment are starting to demand that companies limit their carbon emission, reduce their consumption of water and raw materials, and avoid emitting harmful chemicals and pollutants. Similarly, large groups of consumers and a number of social organizations, foundations, and government agencies study and care about corporate behavior on issues such as diversity in the workplace and the board room, human rights, community responsibility, business ethics and transparency, product quality and safety, and involvement in countries that have restrictive or undemocratic regimes.
As a result of this growing awareness of the importance of social performance and sustainable behavior, thousands of businesses and social organizations incorporate social responsibility and sustainability considerations into their decisions. Hundred of thousands of branding, marketing, supply chain, and corporate strategy managers in large companies need to benchmark their company's performance, manage the impact of environmental, employee, community, and governance issues on their brand and manage their interaction with customer, employee, investor, and activist stakeholders. The managers and staff of 1.3 million US foundations and nonprofits must select corporate targets for donations, endorsements, and social action. Bloggers, journalists, and eco-driven consumers actively seek information on and support companies that fit their personal social values.
Previously, no adequate mechanism has been provided for measuring and monitoring the social performance of companies.